Optical communications & laser solutions provider Oclaro Issues Statement on Thailand Flooding
Oclaro, a tier-one provider of innovative optical communications and laser solutions, today issued a statement regarding the impact on its operations of the Thailand flooding and also provided an update to its expectations for first quarter, fiscal year 2012 financial results which are consistent with guidance provided on July 28, 2011.
Statement on Thailand Flooding:
Oclaro's primary contract manufacturer, Thailand-based Fabrinet, manufactures approximately 30 percent of Oclaro's total finished goods in two factories: Chokchai and Pinehurst. Due to flooding in Thailand, both factories suspended operations on October 22, 2011. As a result, Oclaro immediately began to deploy its contingency planning to assess alternative manufacturing options. Subsequently, on October 24, Fabrinet announced its Chokchai factory suffered extensive flood damage and is now largely inaccessible due to high water levels inside and surrounding the manufacturing facility. Oclaro's assessment of the damage to equipment and inventory on site is affected by the limited site accessibility at this time. Oclaro and Fabrinet management are actively investigating alternative production locations and have enacted business continuity plans. Fabrinet's Pinehurst facility remains secure from flood water at this time, but remains closed. Shipments continue from Oclaro's Shenzhen, China manufacturing facility, and other locations which account for approximately 70 percent of Oclaro finished goods output. However, Oclaro is still evaluating the broader supply chain implications of the flooding in Thailand across its entire manufacturing operations. All Oclaro employees in the region remain safe.
"Our thoughts are with the Thai people who have been personally affected by the flooding in Thailand," said Alain Couder, chairman and CEO, Oclaro. "In addition, we would like to thank our Thai employees and the Fabrinet team who are undertaking extraordinary efforts to assess and contain flood damage."
Couder continued, "Due to the ongoing assessment of flood damage and recovery plans, Oclaro is postponing the announcement of its first quarter FY 2012 financial results. However, we are pleased to report that our preliminary results are within our previous guidance range and that our profitability was near the upper end of the range."
Updated Expectations for Q1 FY2012 Financial Results, Ending October 1, 2011:
Revenue for the first quarter of fiscal 2012 is anticipated to be approximately $106 million, compared with a guidance range of $103 million to $113 million.
Non-GAAP gross margin is anticipated to be approximately 23%, compared with a guidance range of 18% to 24%.
Adjusted EBITDA is anticipated to be approximately $(4.5) million, compared with a guidance range of $(8.5) million to $(2.5) million.
These guidance ranges were provided by the Company on July 28, 2011.
Oclaro cautions that its anticipated financial results are preliminary and based on the best information currently available and are subject to completion of the financial statements for the first quarter of fiscal 2012.
Oclaro expects to announce the date of its next quarterly earnings release and conference call by November 2, 2011. During the conference call Oclaro plans to discuss financial results for Q1 FY2012; will provide an update on the Thailand manufacturing situation; and plans to discuss the anticipated impact of the Thailand production situation on the company's expectations for its second fiscal quarter ended December 31, 2011.